Mosman home passes in for $9.85m as prestige market feels the pressure

A five-bedroom home on the peninsula of Beauty Point in Mosman passed in at $9.85 million on Saturday.

Only one interested party registered to buy the well-appointed two-storey home at 36 Medusa Street but then failed to bid. Instead, there was a vendor bid of $9.85 million and the auction ended.

The reserve was also $9.85 million and the property had a guide of $9.5 million to $10 million, which was revised down to $9 million to $9.5 million after the auction.

There is no legal requirement for a vendor’s reserve to be in line with their property’s price guide.

The potential bidders were a couple who were interested in hosting their grandchildren.

Principal of Guildea Residential, Jason Guildea, said he was surprised by the types of buyers who had shown interest in the property.

“I thought it would be someone with young children because of the space, but the interest has generally been from grandparents looking to move from steeper blocks into something more child-friendly,” he said.

However, he said the uncertain economic climate had given some prestige buyers pause for thought.

“Twelve months ago people would turn up to [the auction of] a $10 million house with a baby on their hip,” he said. “But it’s perhaps a reflection of high interest rates and their reduced capacity to borrow [that they are absent].”

The vendors are moving out of Sydney to be closer to their adult children.

The property was one of 561 scheduled to go to auction in Sydney this week.

In Huntleys Cove, a downsizer from Leichhardt paid $1.97 million for a ground floor apartment, $20,000 above the reserve.

Three groups registered to bid for the keys to G05/12 Karrabee Avenue, with two bidding. Bidding opened at $1.7 million, going up in increments of $50,000 until it reached $1.9 million when it dropped back to several bids of $10,000 before the property sold.

The three-bedroom, two-bathroom property had a guide of $1.8 million and a reserve of $1.95 million.

The new owner, who is originally from the lower north shore, was attracted by the single level and the “future-proof” nature of the apartment, which was a deceased estate.

Sales agent for CobdenHayson Lane Cove, George Gialouris, said there was always a market for “A- grade” properties such as this.

“With properties like this [buyers] will still pull the trigger [at auction],” he said.